20100816-NEWS--0001-NAT-CCI-CD_-- 8/13/2010 5:36 PM Page 1 ® www.crainsdetroit.com Vol. 26, No. 33 AUGUST 16 –23, 2010 $2 a copy; $59 a year ©Entire contents copyright 2010 by Crain Communications Inc. All rights reserved Page 3 Thousands Health reform could bring trouble for insurance brokers of employers $500M for Pistons? Staffing firms find silver Market won’t support asking price, insiders say lining to economic clouds face tax tied BY BILL SHEA her husband, Guardian Industries Tom Wilson, the longtime PS&E CRAIN’S DETROIT BUSINESS Inc. Chairman Bill Davidson, has president who knows the inside Inside hired New York City-based Citi details of the Pistons’ and The bank hired to broker a sale Private Bank’s sports finance and Palace’s financial situations. to UI debt of the Detroit Pistons and Palace advisory team to broker a sale. Ilitch already owns the Detroit See who’s leasing luxury Sports & Entertainment Inc. is seek- Citi declined to comment, as has Tigers and Detroit Red Wings, so suites at Michigan Stadium, ing $500 mil- Davidson through her spokesman. he’s familiar with the local sports If no waiver, DEAL DETAILS lion from po- Detroit sports and pizza indus- markets. Page 6 tential trialist Mike Ilitch, who an- The most recent NBA team Financing: Ilitch buyers — a nounced Aug. 9 sale was a $450 mil- likely has plan for price indus- that he’s told lion deal for the fee could hit Pistons, new try insiders Davidson he wants Golden State War- Second Stage Extra arena, Page 29 That would be and likely to buy the Pistons riors in July. Indus- Deep pockets: “ $67 a worker bidders con- and PS&E, likely an extraordinary try insiders have Ilitch’s revenue sider inflated streams, Page 29 would pay less than called the sale, BY AMY LANE by $100 mil- Who else: $400 million for price to be which is the most CAPITOL CORRESPONDENT Other prospective lion in this both, said the ever paid for an buyers, Page 29 market, a source, who agreed achieved. NBA team, signifi- LANSING — Michigan faces an source famil- to speak to Crain’s cantly inflated. estimated $140 million interest bill ” iar with the situation said. on the condition of Marc Ganis, Sportscorp Ltd. The Pistons are next year stemming from its feder- Karen Davidson, who has anonymity. valued at $479 mil- al unemployment borrowing, and owned the National Basketball As- That’s because of the economi- lion by Forbes.com, although ana- that could mean additional taxes Growing companies sociation franchise and the PS&E cally depressed metro Detroit lysts warn that the financial pub- starting in January for thousands umbrella management organiza- market, the source said, and be- face challenge of of employers. tion since the March 2009 death of cause Ilitch in February hired See Pistons, Page 29 A state solvency tax, assessed on adding management, “negative balance” employers Page 10 whose employee-benefit claims ex- ceed the unemployment taxes they paid, is slated to return in January Crain’s Lists to repay interest on the $3.8 billion the state has borrowed from the Quicken HQ: Designed to thrive U.S. Department of Labor to help pay 3Q SBA lenders and largest benefits. family-owned companies, The federal stimulus law includ- Cool spaces save cash, ed a temporary interest waiver for Pages 14-15 Michigan and other states borrow- ing money, but that reprieve ends increase performance at year’s end and states must start This Just In paying interest in 2011 unless Con- BY DANIEL DUGGAN gress extends the waiver. CRAIN’S DETROIT BUSINESS State and business officials hope Tribe buys land next While the new downtown Detroit headquarters that extension will occur. space for Quicken Loans Inc. is filled with graffiti art, to Pinnacle Race Course Given the uncertainty, the Michi- neon chairs and rooms with popcorn poppers, there gan Unemployment Insurance Agency The Sault Ste. Marie Tribe of is a serious business strategy behind its design. is getting the word out to employ- Chippewa Indians confirmed Elements of Quick- ers that the state solvency tax of up Friday that it has bought 7 en’s office design — to $67.50 per employee could be SNEAK PEEK acres adjacent to the Pinnacle portable employee heading their way. Race Course thoroughbred work stations, collab- Stephen Geskey, director of the track in Wayne County’s orative seating areas, UI agency, said that based on a pre- Huron Township but has not and work stations vious agency re- announced development placed near large win- view there could plans. dows — are all part of be some 60,000 “We believe the lands adja- the science behind “negative-bal- cent to Pinnacle Race Course the workplace. ance” employ- are ideal for many different And they play into ers to whom the Slideshow: Look around types of job-creating enter- cost savings and the tax would apply, Quicken’s new downtown prises,” tribal Chairman Joe company’s business but the agency Detroit office space, McCoy said in a statement. crainsdetroit.com/quicken plan. is conducting a “Opportunities could include Architects and current count. businesses that seek to in- real estate consultants say the business strategy of Wendy Block, crease the region’s world an office layout is an important point that has been Geskey director of NATHAN SKID/CRAIN’S DETROIT BUSINESS trading activities, retail getting traction in C-suites, especially as companies health policy and human re- Viewed from Quicken’s new Detroit offices, a mural on the stores and much more.” look at ways to cut costs. sources at the Michigan Chamber of Cadillac Tower sends a message about the company’s See This Just In, Page 2 Total occupancy savings — comprising all the costs move from Livonia. More pictures on Page 28. See Solvency tax, Page 26 of paying for real estate and how employees use it — can be from 10 percent to 15 percent when a company to the bottom line.” moves from an older, inefficient space to a new, effi- One target for cost savings, Gantner said, is the cient office, said Ron Gantner, executive vice presi- expense of moving an employee’s work space. dent for the Detroit office of Jones Lang LaSalle. In some offices, he said, the cost of moving an em- “When you start creating small efficiencies here ployee is $500 to $600 when factoring in the expense and there, pennies per square foot, they add up, es- of moving wires, office furniture and expanding a pecially when you look at the lifetime of a lease,” work space. In new layouts, such as Quicken’s said Gantner. “CFOs who have always looked at real space, employees use laptops and connect to a wire- estate as an evil expense are really now looking at it less network. NEWSPAPER as a strategic factor, because savings are going right See Quicken, Page 28 20100816-NEWS--0002-NAT-CCI-CD_-- 8/13/2010 5:03 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS August 16, 2010 In June, the Michigan Gaming Con- tion and air pollution. About 23,000 tute Hospice, Mercy Hospice and THIS JUST IN The way it was: 1986 trol Board approved the transfer of commuters cross the border daily. VNA Hospice. Greektown’s ownership from the — Bill Shea — Jay Greene ■ From Page 1 Throughout our 25th-anniversary tribe to publicly owned Greektown year, Crain’s will use this space to Superholdings Inc. and the private Group buys 40 acres in Macomb look at interesting items from past group Greektown Newco Sub Inc. Women’s Committee The track’s owner, Jerry Camp- In a rare Macomb County land bell, sold the tribe the parcel for issues. The casino entered Chapter 11 for Hospice Care closes bankruptcy protection two years sale, 40 undeveloped acres have $179,000 through his J.L.L.J. Corp. A down economy and growing been sold to a group of investors. Two 5-acre parcels also are for sale. ago. A U.S. bankruptcy judge ap- We’re loyal proved an exit plan in January. difficulties in fundraising have The listing price was $1.35 mil- The tribe previously owned De- “ led to the closure of the nonprofit lion for the property at the south- troit’s Greektown Casino and cur- to Detroit, Jerry Campbell, the retired chairman and founder of the for- Women’s Committee for Hospice west corner of North Avenue and rently owns five Kewadin branded Care, Bloomfield Hills, after 23 26 Mile Road, said Joe Sowerby, casinos in northern Michigan. but we’re a mer Republic Bancorp Inc. in Ann Arbor, led a consortium making a years, said President Julie Beals. partner at Mt. Clemens-based An- The Sault tribe and J.L.L.J. “Our all-volunteer organiza- ton, Zorn & Sowerby Inc. Corp. are doing studies to deter- corporation. $100 million bid to buy a 40 per- cent stake in Greektown in 2008, tion has worked diligently to pro- Sowerby represented the seller, mine the best use for the land, ” Thomas Cox, mote hospice care awareness and NLR Properties, a husband and they said in a statement. but the deal later fell apart. — Bill Shea raise funds to support the non- wife who bought the property as Development could be linked to United Brands Co., Cincinnati profit communities in Macomb, an investment. The property was the track, the nearby air logistics From a June 23, 1986, article Detroit ferry in run for funding Oakland and Wayne counties, sold to North Avenue Investments industry or gaming.